Sonaecom Takeover Of Portugal Telecom D Case Study Solution


Home >> Harvard >> Sonaecom Takeover Of Portugal Telecom D >>

Sonaecom Takeover Of Portugal Telecom D Case Study Solution

Background and Facts

Sonaecom Takeover Of Portugal Telecom D a workplace products merchant for tiny and average sized companies has actually lately been involved in planning for a merging with its rival House Deport, which has affected performance levels in departmentswith the elderly manager associated with lawful issues put forth by the government Trade Payment. With the Marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With obstacles in the type of a possible cultural adjustment and reduced staff member morale, the organization requires a complete reengineering initiative at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural change at the advertising and marketing department of Sonaecom Takeover Of Portugal Telecom D is raising uncertainty in the workplace bring about various obstacles for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing strategic decisions because Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Trade Commission's treatment while doing so. Given the reality that the shop has a global existence with branches in UK, USA, Canada and Germany, political factors in each of these countries may be able to affect performance or critical goals. Federal Trade Commission's antitrust fit versus the merging used up valuable time of the organization's elderly administration suggesting that 'political' factors can have significant implications for a worldwide business.

Economic Factors: Economic factors such as the introduction of small businesses in the global scenario recommend that Sonaecom Takeover Of Portugal Telecom D is growing in an atmosphere where there is prospective growth of businesses. In addition to this, fact that store customers are mainly looking for workplace materials for office suggests that the marketplace has a climbing pattern of entrepreneurs and home based businesses.

Social factors: Social patterns in the economy reveal that consumers are trying to find convenience as well as attractive rates. Market research shows how the consumer for Sonaecom Takeover Of Portugal Telecom D lacks awareness about finding remedies which can offer a combination of benefit as well as inexpensive.

Technical factors: Technology plays an important function in Sonaecom Takeover Of Portugal Telecom D's company technique particularly as the company is piloting Innovation facilities which would certainly supply modern technology sales and also support in the form of memory upgrades, peripheral installations. (Recap of PARASITE in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Behavior problems can be seen in Sonaecom Takeover Of Portugal Telecom D's case as highlighted in this section.

Apprehensions concerning cultural modification: There is apprehension regarding a cultural adjustment that would occur as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the personnel currently revealing unhappiness over this possible action. This anticipated change has developed stress and anxiety in the workplace which has been combined with the previous stress and anxiety of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of personnel that can match the stressful atmosphere of a fast-paced organization. Not only does this cause trouble in finding the ideal individuals, it puts anxiety on brand-new hires as can not hold up against the pace and pressure that the organization anticipates them to birth.

Double Coverage Lines: Beginners find this organizational society difficult and also hard to cope with specifically as populated line connections are suggested to be weak generally and also unbiased setting and efficiency examination is still done by the solid line manager. This implies that newcomers can lose clearness about their corresponding duties as well as goals particularly as dotted line coverage does not maintain them in straight interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's position came as an impact to her morale. Lewis may have been qualified as well as appropriate for the job yet the fact that Kransnow's separation would make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Fear & Work Insecurity: Concern and insecurity can be recognized as 2 significant issues that Lewis would certainly be dealing with specifically as the merger has actually currently be terminated and two senior execs of the advertising department would be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining about a cultural modification but would certainly also need to prove herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's administration style as well as its incompatibility with the advertising department's duty can likewise be seen as an OB difficulty especially as she has been used to dealing with concerns in the procedures department where employees are shown to concentrate on procedures and obtain them. The advertising division on the various other hand can be viewed as a group of individuals that are used to being nurtured by Krasnow who focused more on result than procedures.

Interdepartmental Disagreements: Interdepartmental differences in between three divisions, marketing, merchandizing and also procedures specifically over the allowance of the advertising mix can be identified as another OB concern. The advertising division does not share the same vision as the various other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also operations divisions do not agree over the advertising mix appropriation among one another either.

Disintegration in Advertising And Marketing Department: Disintegration between the advertising and marketing divisions can be recognized as an additional OB concern which might require additional attention. The reality that the marketing and advertising sections in the advertising department are separated is avoiding both departments from getting from each other's experience and competence. Combination of advertising and marketing with retailing and also procedures would certainly end up being more difficult if the advertising department itself is degenerated which can be one more potential OB problem.

Sonaecom Takeover Of Portugal Telecom D Analysis

Different theories have actually been used to discuss the conditions to get additional quality concerning the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that staffs are easy as well as lazy, have little passion as well as withstand adjustment. The hard variation of this concept stressed threat, limited controls, dangers as well as punishments. Gradually it generates low productivity, subtle sabotage and also rivalry (Bargain, 2003). The situation at Sonaecom Takeover Of Portugal Telecom D is not completely following Theory X, it can be seen that new hires are finding this environment instead demanding which might ultimately lead to a greater inclination of the monitoring in the direction of Concept X. Based on McGregor's supported view, which he called Theory Y, the vital job of the monitoring is to organize business problems to make sure that individuals can accomplish their own goals best by directing their efforts towards organizational rewards. If individuals find no complete satisfaction in their job, the management would have little choice but to rely upon concept X and also exterior control (Bargain, 2003). Even while examining Lewis's management design, concept X might have appropriated in the operations department somewhat however the Advertising division would certainly need dependence on Theory Y so as to get the imagination as well as originality from the teams.

Tuckman's Synergy Theory: As much as Lewis's issue about bringing consistency in between the advertising and marketing and also advertising department is concerned, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing and also advertising and marketing department's work, there may be the same first disconnect which could lead to the 2nd phase of 'storming' where the groups test one another.

Bridges' Change Version: According To William Bridge's theory (appendix 4), people are rather awkward with adjustment, which is obvious by the situation at Sonaecom Takeover Of Portugal Telecom D The circumstance can be viewed as a normal training course of life if is studied as per Bridge's concept where he discusses that people undergo three stages of shift when they experience change. 'Closing, losing and Letting go', The Neutral Zone and 'The New Starting' (Bridges, 2004). When people exist with adjustment, they get in phase one therefore there may be feelings like unhappiness, uncertainty, aggravation, temper, worry, denial and also disorientation.The scenario at the advertising and marketing department of Sonaecom Takeover Of Portugal Telecom D is similar so Lewis can get comfortable with the concept that it is not remarkable habits. In the second phase, there may be a demand to bridge the void in between the new as well as old society so Lewis might need to face this experience once Krasnow leaves. There may be reduced morale as well as low productivity at this phase which ought to not be taken as a setback. It is throughout this stage that Lewis will certainly have to give support to the division to make sure that they can locate an orientation. It can be seen how Krasnow has actually already made this transition easier by making Lewis get associated with the division a year before his actual separation. Based on Bridges' Model, stage three will certainly produce openness to knowing, High energy as well as commitment as people will accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has discusses the importance of 'safety and security requires as being a lower degree need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel protected as well as out of risk' is at the 2nd degree of demands. Before an employee can be made to develop mentally, he requires to have his 'Physiological 'and 'Security' requires satisfied.

SWOT Analysis for Sonaecom Takeover Of Portugal Telecom D Case Study

Ramification of Analysis.

The OB analysis has actually checked out various concepts to recognize exactly how to cope with the current scenario available. The complying with three options have been proposed to help Lewis deal with the organizational challenges in the advertising and marketing department. Each of these options has actually been suggested for reducing the shift required to bring the marketing division in line with the needs of the market and also for making the social change that would certainly adhere to once the existing leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting as well as Production functions. Integration of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Integration of Marketing & Marketing Functions: The internal advertising and marketing company of Sonaecom Takeover Of Portugal Telecom D is already stamina for the company in regards to saving up on overheads connected to marketing and also promo. Since no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight designated to Krasnow for the advertising and marketing feature, this is a favorable possibility for integrating the advertising and marketing features. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business marketing together with company as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing and advertising functions.

The benefit of this method is that it will integrate the two functions while reducing the demand for hiring an added resource for advertising and marketing. Along with this, Lewis would be heading the advertising division and also all the same her replacement would be needed for the existing duty that she is carrying out. The negative aspect of this option is that outside hiring might bring about animosity from internal workers that may be eying the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Production: Offered the competitive stress and high top quality work needed from the marketing firm, it is recommended that Lewis ought to enable the manufacturing device to be a separate function from the advertising and marketing unit. Because the majority of advertising and marketing agencies had these 2 functions as different devices, it makes even more feeling to adhere to the norm.

Assimilation of Marketing with Workflows: Given that Lewis is already caring for the advertising as well as operations departments at the same time; it makes sense to integrate both functions given that she has been successfully taking care of both ends. The reality that the two departments already have major distinctions over allocation of sources recommends that this combination may have the ability to cause harmony particularly as Lewis would be heading both ends.However there are different downsides of this relocation particularly as it would put excessive burden over Lewis's shoulders. The truth that Lewis needs to adapt her monitoring style for the advertising division suggests that these two divisions would be culturally diverse. Along with this, Lewis may not have the ability to apply one kind of leadership style to both divisions which might cause inadequacy in either one of the two functions.


An analysis of the 3 options indicates that assimilation of marketing and operations would certainly not be a viable move because of the huge differences between the two departments although that currently Lewis is handling both. While splitting up of the production feature might have been a beneficial relocation for the advertising and marketing division, the fact that it would certainly mean putting a 3rd function under Lewis's wing suggests this ought to be avoided too. The combination of the advertising and marketing division is the best option in regards to obtaining the ideal results from the division. An activity prepare for this choice is gone over listed below.

Activity Strategy.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

Judith Shapiro will certainly be employed to take Lewis's location as SVP of advertising and marketing.

Production function will stay part of advertising and marketing under marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous management style with worker empowerment will certainly be utilized in advertising and marketing department.

Open door policy and also focus on cross department communication will certainly be aimed at eliminating dissonance.

Contingency strategy.

If the assimilation does not work out as planned, a contingency plan would certainly adhere to which would divide the manufacturing feature from the marketing function to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing feature will most definitely be divided by placing it under an SVP production.